You Only Live Once generation is 'clueless' about money: Two-thirds of millennials admit to splurging on nights out and fashion

Live-for-the-moment young adults are 'clueless' about money, opting to splash out on nights out, coffee, fashion and takeaways rather than securing their financial future, research claims.

Twenty-six per cent of 18 to 30 year olds do not save or invest anything at all, with 62 per cent admitting they are 'clueless' about money matters, RateSetter said.

One in seven young Britons have not thought about planning for their retirement, despite nearly half being worried about the state of their pension pot in years to come.

'Clueless': Live for the moment 18 to 30 year olds are 'clueless' about money, findings by RateSetter suggest

Nearly 60 per cent of today’s You Only Live Once or YOLO generation aged 18 to 30 admitted to prioritising spending their money on going out, fashion and luxuries over investing and saving for the future.

In a sign of the times, 35 per cent could not imagine ever being able to own their own home sunless they inherit one, RateSetter's survey of more than 1,000 people reveals.

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With the YOLO generation living for the here and now, over half of those surveyed admitted to frivolous spending on takeaways with 53 per cent buying takeaway food at least once a fortnight and 77 per cent spending up to £20 each time, equating to over £500 a year.

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The survey also found that when they do put money away, the YOLO generation are doing so for holidays and travel abroad, with sixty per cent admitting to stashing their cash for trips away.

Around 46 per cent of 18 to 30 year olds surveyed believed the current average interest rate of 0.3 per cent for instant access savings is a reasonable rate of return.

Two-thirds have not moved their money around to get a better rate of return for over a year, the findings add.

Rhydian Lewis, RateSetter's founder and chief executive, said: 'With interest rates languishing at historical lows for several years and recently cut even closer to zero, it is all the more important for young people to ensure that they get on top of their finances.'

Living for the moment: Over half of those surveyed admitted to frivolous spending on takeaways with 53 per cent buying takeaway food at least once a fortnight

Separate research published by Nationwide Flex Student suggests two-thirds of British parents have embraced austerity by cutting back on their standard of living to pay for their children’s university education.

Thirty-four per cent of parents let their savings decline to help fund their offspring through university, while 29 per cent cut back on holidays, the findings show.

Dan King, Nationwide’s Head of FlexStudent Current Account, said: 'University can be an extremely expensive time for parents and students alike and often parents are expected to cover the shortfall, putting them under increased pressure and resulting in tightening their purse strings.

'For students to manage their own financial situation effectively, they need to understand how finances work and learn to budget, so they can stand on their own two feet.'